The Trump Tax Cuts & Jobs Act increased the Standard Deduction to $12k for Individual and $24k for Married filers. This can affect you negatively if you normally itemize your deductions.
If you itemize and have more than $12k in itemized deductions, then you have a better chance of getting your medical expenses deducted. You still have to beat the 7.5% threshold, which most people don’t!
If you don’t itemize, then your medical expenses aren’t going to be relevant for tax time.
One thing that all filers can take advantage of, regardless of filing status, income limits and tax brackets, is the Health Savings Account.
This allows you to store $3450 for an individual ($6900 for a family) into an account which is basically a Medical Savings account. The amount you contribute is NOT TAXED.
If you sign up now, you can still contribute funds to the HSA for the 2018 tax year. You will also have it setup for the 2019 tax year.
Once you contribute funds, you will use your HSA Debit Card to pay for medical expenses, such as pharmaceuticals, chiropractor, doctor visits, doctor prescribed supplements, etc.
There is one caveat to the HSA plan – you just have to have a high deductible health insurance plan. A High Deductible plan is considered one with a $2,000 deductible or more.
Interested to learn more? Go visit hsabank.com for more information. Also, it’s FREE to signup!
This can save you between $450 – $2553 in taxes this year.
Interested to learn more? Contact firstname.lastname@example.org